GOOD MORNING AND WARM CONGRATULATIONS TO THE SM GROUP AND WORLD WIDE FUND FOR NATURE (WWF) PHILIPPINES FOR HOLDING THIS YEAR’S UNITED FOR CLIMATE SUSTAINABILITY FORUM PH, WHICH SERVES AS THE LAUNCH PLATFORM FOR THE CREATION OF A PHILIPPINE ALLIANCE FOR CLIMATE ACTION.

IT IS AN HONOR TO BE INVITED TO SHARE THE DENR’S THOUGHTS ON HOW WE AT THE DEPARTMENT ARE WORKING TO RECAST OUR OWN ROLES, GIVEN THE INTERCONNECTEDNESS OF OUR SYSTEMS AND EXISTENTIAL CHALLENGES COMING FROM CLIMATE CHANGE.

WHILE NEW RISKS ARE EMERGING, THERE ARE ALSO NEW WAYS OF WORKING TOGETHER. LET ME BEGIN BY SAYING THAT WHILE THE CHALLENGE TO KEEP 1.5 DEGREES ALIVE GROWS LARGER, THERE IS CONSENSUS THAT EVERY FRACTION OF A DEGREE COUNTS.

EVEN IF HE LIKELIHOOD IS HIGH THAT WE WILL MISS WHAT WE PROMISED TO DO BY 2030, WE MUST URGENTLY ESTABLISH SHARED VALUES, SYNERGY, COMMITMENT, AND COLLABORATION IN ORDER TO AVOID, MINIMIZE, MITIGATE, OR COMPENSATE TO ADDRESS THE IMPACTS OF CLIMATE CHANGE.

ALLOW ME TO START WITH OUR MAIN TAKEAWAYS FROM COP27, WHICH WILL CONTINUE TO EVOLVE IN CRITICAL WAYS AS WE SPEAK.

COP 27 BEGAN WITH KNOWLEDGE OF TWO CRITICAL REPORTS FROM UNEP, NAMELY, THE 2022 ADAPTATION GAP REPORT AND THE 2022 EMISSIONS GAP REPORT, ESSENTIALLY, THESE CITE THAT BASED ON CURRENT NDC POLICIES AND PERFORMANCE, WE ARE ON THE ROAD TO 2.8 DEGREES, AND AS WE ARE NOW AT 1.1 DEGREES ABOVE PRE-INDUSTRIAL TEMPERATURES, WE COULD POSSIBLY REACH 1.5 DEGREES IN THE MID-2030S.

THESE REPORTS STRESS THE NEED TO COMBINE AND HIGHLIGHT THE RELATIONSHIP BETWEEN BOTH ADAPTATION AND MITIGATION.
EMPHASIZING PREVENTION, ADAPTATION FINANCING IS NEEDED TO AVOID THE HARMFUL EFFECTS AND RISKS FROM CLIMATE CHANGE WHICH THE IPCC AR6 REPORT STATES WILL INTENSIFY WITH EVERY 10TH OF A DEGREE INCREASE.
WE MUST BE READY TO FINANCE LOSS AND DAMAGE IN ORDER TO ADDRESS UNAVOIDABLE IMPACTS – AND THIS WAS ONE OF THE VICTORIES IN EGYPT. HOWEVER, THIS DID NOT COME WITHOUT A PRICE – PRIMARILY, THE WEAKENING OF THE PHASEOUT OF FOSSIL FUELS.
THE EMISSIONS REPORT TELL US THAT WE WERE WAY OFF FROM THE 1.5 DEGREE COMMITMENT IN PARIS. GLOBAL EMISSIONS NEED TO BE CUT DRASTICALLY BY 30-45% BY 2030 AND THEREAFTER, CONTINUE TO DECLINE RAPIDLY IF WE ARE TO KEEP 1.5 ALIVE AND AVOID CATASTROPHIC LOSS AND DAMAGE.

ONE OF THE CLEAREST MESSAGES PRESENTED IN COP27 INVOLVED THE NEED FOR A COMPREHENSIVE CLIMATE AND DISASTER RISK ASSESSMENT FOR INVESTMENT AND ACTION TO PROTECT AND ENHANCE HUMAN AND ECOLOGICAL SYSTEMS. BY TAKING ALL HAZARDS, INCLUDING CLIMATE CHANGE AS A MAIN RISK DRIVER, DEVELOPING COUNTRIES SUCH AS THE PHILIPPINES HAVE THE OPPORTUNITY TO ADDRESS URGENT AND SPECIFIC CHALLENGES TO INCLUSIVE AND RESILIENT AND SUSTAINABLE DEVELOPMENT. WE ARE FORTUNATE THAT THIS APPROACH TO ALL HAZARDS IS ALREADY IN THE DNA OF THE SM GROUP. GIVEN THIS NEW PARTNERSHIP WITH WWF, I HAVE NO DOUBT THAT THERE WILL BE NEW ENERGY AND CAPACITY TO ADDRESS THE COMPLEXITY OF COMPOUNDING AND CASCADING RISK WITHIN THE CORE BUSINESS, AMONG THE MANY MSME PARTNERS IN THE SUPPLY AND VALUE CHAINS, AND THE ECOSYSTEMS THAT SUPPORT THE ENTERPRISES AS WELL. OTHER CORPORATIONS HAVE ALSO UNDERTAKEN SIMILAR RETHINKING AND RETOOLING. AND I ENCOURAGE MORE TO DO SO, AS WE NEED TO GET THE PRIVATE SECTOR INVOLVED IN HELPING THE COUNTRY ATTAIN ITS NATIONALLY DETERMINED CONTRIBUTION (NDC) TARGETS FOR GHG REDUCTION AND FOR CLIMATE ADAPTATION AND DISASTER RISK REDUCTION.
WHAT LIKEWISE BECAME EVIDENT AT COP 27 IS THAT THE PRIVATE SECTOR HAS EMERGED AS A CRITICAL ACTOR IN BRIDGING THE COST OF FINANCING CLIMATE ACTION. THIS IS ESPECIALLY TRUE FOR ENERGY TRANSITION AND THE JUST TRANSITION OF LABOR TOWARD NET ZERO. ENERGY TRANSITION COSTS ARE ESTIMATED TO BE IN THE TRILLIONS FOR SOME COUNTRIES AND SECTORS.

OUTSIDE OF THE OFFICIAL NEGOTIATIONS AND AT THE VARIOUS SIDE EVENTS AT COP27, THE PRIVATE SECTOR SHOWED LEADERSHIP ACROSS THE AREAS OF CLIMATE AMBITION, LOW-CARBON TECHNOLOGY, AND CLIMATE ADAPTATION. EVEN FINANCIAL INSTITUTIONS AND BANKS WERE PRESENT TO SHOWCASE THEIR PROGRESS IN ADDRESSING CLIMATE CHANGE.

THE ISSUE OF JUST TRANSITION OF LABOR WAS HIGHLIGHTED SPECIFICALLY FOR THE MARITIME INDUSTRY, WHICH IS THE BACKBONE OF GLOBAL TRADE. WE KNOW THAT THIS ISSUE CUTS ACROSS SUPPLY AND VALUE CHAINS AND IMPACTS THE VIABILITY OF OUR MSME SECTOR.

THERE IS AN URGENT NEED TO BEGIN ENHANCING BASIC AND TERTIARY EDUCATION, RESKILLING, AND UPSKILLING TO ANTICIPATE THE CHANGES IN ENERGY, MATERIALS SOURCES, MOBILITY OF GOODS AND SERVICES, CONSTRUCTION, AND WAYS OF WORKING.

FINANCING CLIMATE ACTION CONTINUES TO BE A SLOW AND INCREMENTAL PROCESS GLOBALLY. AT COP 27, CLIMATE FINANCE WAS HIGH IN DEMAND BUT ONCE AGAIN, LOW IN DELIVERY. THE PROMISED 100 BILLION US DOLLARS PER YEAR BY DEVELOPED COUNTRIES IN 2020 REMAINS UNFULFILLED. BUT THERE WAS A PLEDGE TO DOUBLE ADAPTATION FINANCE. DEVELOPING COUNTRIES SENT A CLEAR SIGNAL TO INVESTORS, CENTRAL BANKS, AND INTERNATIONAL FINANCIAL INSTITUTIONS OF THE URGENCY OF UNLOCKING THE SCALE OF FINANCE NEEDED FOR RAPID CLIMATE ACTION AND ADDRESSING CLIMATE IMPACTS, INCLUDING THROUGH GLOBAL FINANCE SYSTEM REFORM.

IT IS WORTH NOTING THAT AS FAR AS THE PHILIPPINES IS CONCERNED, ROUGHLY 8% OF OUR 5 TRILLION BUDGET IS CLIMAT-TAGGED. HOWEVER, THERE IS A NEED TO REVIEW THESE EXPENSES TO ENSURE THEIR EFFECTS ON ADDRESSING NEEDS AND IMPACTS.

NATURE-BASED SOLUTIONS TO ADAPTATION, MITIGATION, AND DISASTER RISK REDUCTION HAVE ALREADY GAINED REAL TRACTION AND GLOBAL RECOGNITION. THE WORLD BANK PROVIDES ESTIMATES INDICATING THAT UP TO 37% OF MITIGATION NEEDS TO BE REACHED BY 2030, CAN BE ACHIEVED THROUGH NBS. WE KNOW THAT ECOSYSTEM SERVICES PROVIDE DISASTER RISK REDUCTION AND ADAPTATION OPPORTUNITIES. COP27 SAW NEW INITIATIVES SUCH AS THE POSITIVE CONSERVATION PARTNERSHIP LED BY FRANCE, WHICH IS WITHIN THE FRAMEWORK OF THE HIGH AMBITION COALITION FOR NATURE AND PEOPLE. THE GLOBAL ENVIRONMENT FACILITY IS LAUNCHING A HIGH-LEVEL GROUP TO STUDY THE POSSIBILITY OF A BIODIVERSITY CREDITS MARKET.

HAVING SAID ALL THESE, ALLOW ME TO RECALL THAT THE PHILIPPINES RANKS NUMBER 1 ON THE 2022 WORLD RISK INDEX. THIS IS AS MUCH A RESULT OF THE ACCIDENT OF OUR PHYSICAL GEOGRAPHY AS IT IS OF OUR DEVELOPMENT TRAJECTORY, CHARACTERIZED BY DECADES OF UNREGULATED URBANIZATION, INEQUITIES IN SOCIAL SERVICE AND SOCIAL PROTECTION, AND THE DISREGARD FOR THE WAYS BY WHICH OUR ECOSYSTEMS SUPPORT OUR COMMUNITIES.

WE ARE, HOWEVER, NOT WITHOUT HOPE. AND THIS IS WHERE THE NEW PHILIPPINE ALLIANCE FOR CLIMATE ACTION AND PARTNERSHIP WITH THE DENR COULD YIELD THE MOST SIGNIFICANT RESULTS. THIS SYNERGY WILL GENERATE NEW CAPACITY TO PROTECT, RESTORE, AND ENHANCE OUR RICH BUT THREATENED ECOSYSTEMS IN WAYS NEVER POSSIBLE BEFORE.

HIGHLIGHTING THE IMPORTANCE OF LEADERSHIP IN THE PRIVATE SECTOR, I QUOTE A RECENT ARTICLE PUBLISHED BY THE MCKINSEY WHICH STATE: “TODAY’S REALITY IS THAT SUSTAINABILITY, ECONOMIC COMPETITIVENESS, AFFORDABILITY, AND NATIONAL SECURITY DOVETAIL AS NEVER BEFORE.” (SOURCE: A DEVILISH DUALITY: HOW CEOS CAN SQUARE RESILIENCE WITH NET-ZERO PROMISES. 1 NOVEMBER 2022)

ONE VERY CLEAR EXAMPLE IS OUR FORESTS. THERE ARE 15 MILLION HECTARES CLASSIFIED AS FOREST LANDS AND ONLY 7 MILLION OF THESE ARE UNDER FOREST COVER. THERE IS GREAT POTENTIAL FOR MITIGATION THROUGH CARBON SEQUESTRATION, DISASTER RISK REDUCTION, AND THE ENHANCEMENT OF ECOSYSTEM SERVICES FOR WATER, FOOD, AND ENERGY SECURITY. OURS IS AN ARCHIPELAGIC COUNTRY – THIS POTENTIAL EXTENDS TO OUR COASTAL AND MARINE ECOSYSTEMS INCLUDING MANGROVES, SEA GRASS, AND REEFS.

IN FACT, MANY FOREIGN GOVERNMENTS AND GLOBAL CORPORATIONS ARE EYEING INVESTMENTS IN THE GROWTH AND PROTECTION OF THESE ECOSYSTEMS TO SECURE MITIGATION GOALS. WE HOPE THAT OUR PARTNERSHIP WITH YOU CAN LEAD THE WAY FOR THE IMPACTS OF THESE INVESTMENTS TO ADDRESS THE NEEDS OF OUR COUNTRY AND COMMUNITIES FIRST.

ON INDUSTRIAL PROCESSES, DECARBONIZATION EMISSIONS REDUCTION AND CARBON CAPTURE. WHILE SUSTAINABILITY REPORTING IS CURRENTLY MITIGATION-BASED, I URGE THOSE PRESENT HERE TODAY TO NOT ONLY LOOK TO ENERGY EFFICIENCY – THE SHIFTS TO RENEWABLE ENERGY AND RESOURCE EFFICIENCY, AND ESTABLISHING YOUR PROCESS AND PRODUCT CONTRIBUTIONS TO THE CIRCULAR ECONOMY – BUT TO INCLUDE AND INTERNALIZE THE ROLE OF NATURE IN ADAPTING TO CLIMATE CHANGE AND ITS CRITICAL IMPORTANCE TO DISASTER RISK REDUCTION.

MOVING FORWARD, I REQUEST YOU TO WORK WITH US ON THE FOLLOWING:
HELP US BY SUPPORTING THE IDEA OF ESTABLISHING A NATIONAL RISK REGISTER WHICH WILL ENTAIL A MULTI STAKEHOLDER HORIZON SCANNING EXERCISE. THE REGISTER CAN SERVE AS THE BASIS FOR DETERMINING OUR GAPS AND NEEDS AND THE PRIORITIES OF OUR DEVELOPMENT PLANS.
WORK WITH US ON THE BUILDING OF THE NATIONAL NATURAL RESOURCE GEOSPATIAL DATABASE.
WE ARE REVIEWING OUR ENVIRONMENTAL LAWS AND APPLYING A COMPREHENSIVE RISK LENS. WE WOULD VALUE YOUR SYNERGIZED EXPERT INSIGHTS AND EVENTUALLY THE ALIGNMENT OF INVESTMENTS TO ADDRESS COMPLEX AND, POSSIBLY, COMPOUNDED AND CASCADING RISK ACROSS SECTORS AND SCALES.
CONTINUE TO MAINSTREAM CLIMATE AND DISASTER RESILIENCE INTO YOUR CORE BUSINESS CYCLES. SM HAS BEEN A LEADER IN THIS REGARD AND TODAY IS JUST ONE OF THE PROOFS OF THIS.

THE PHILIPPINES IS FORTUNATE TO HAVE ORGANIZATIONS SUCH AS THE SM GROUP AND WWF PHILIPPINES THAT HAVE INVESTED IN THIS AND I KNOW THIS FIRST-HAND. BOTH FULLY UNDERSTAND THAT THE LAST MILE – OUR COMMUNITIES AND ECOSYSTEMS THAT SUPPORT THEM – NEED TO BE THE FIRST MILE IN TERMS OF INVESTMENT, ESPECIALLY IN THE AREAS OF RISK COMMUNICATION, IMPACT-BASED EARLY WARNING, AND ENVIRONMENTAL PROTECTION.

I WISH TO NOTE HERE THAT WE HAVE HAD MANY DISCUSSIONS ON HOW ESG NEEDS TO BECOME ESG+R, R BEING RESILIENCE. LET R, IN THIS CASE, NOT JUST REFER TO THE BUSINESSES YOU REPRESENT AND THEIR PATHWAYS TO NET ZERO, BUT IT SHOULD ALSO INCLUDE THE WORK NEEDED BEYOND OUR FENCE LINES TO PRESERVE AND PROTECT THE ECOSYSTEMS AND COMMUNITIES THAT SUPPORT THEM.

FIFTH AND CLOSEST TO THE DENR’S MISSION – LET US COLLABORATE ON PRIORITIZING AND ACCELERATING THE ADOPTION OF NATURE-BASED SOLUTIONS THAT RESULT IN CO-BENEFITS TO CLIMATE ACTION AND DISASTER RISK REDUCTION.

WE WANT TO WORK WITH YOU ON BUILDING EVIDENCE-INFORMED AREA-BASED RESILIENCE. THE INTERVENTIONS WE NEED TO TAKE ARE NECESSARILY TRANSDISCIPLINARY, TIME-SENSITIVE, AND SPATIALLY-TARGETED – IN ORDER FOR THEM TO BE TRANSFORMATIONAL.

THIS MEANS THAT INVESTMENT STRATEGIES, ENTERPRISE RISK MANAGEMENT, AND INTEGRATED ESG PROGRAMS WILL NEED TO BE PERIODICALLY REVIEWED, RECALIBRATED, AND SYNERGIZED TO ACHIEVE UNITY OF PURPOSE.

IN THIS LIGHT, MAY I ALSO URGE YOU TO PLEASE CONSIDER SUPPORTING THE GOALS OF THE TASKFORCE ON NATURE-RELATED FINANCIAL DISCLOSURES ALONG WITH THE TASK FORCE ON CLIMATE-RELATED FINANCIAL DISCLOSURES.

MY TWO LAST THOUGHTS ON THE WAYS FORWARD WOULD BE:
TO SCALE UP INVESTMENT ON EDUCATION IN ORDER TO BUILD A KNOWLEDGE-BASE AND CAPACITY TO ADDRESS UNCERTAINTY
TO BROADEN OUR AWARENESS OF GEOSTRATEGIC ISSUES THAT CAN LIMIT OUR OPTION FOR COMPREHENSIVE CLIMATE AND DISASTER RISK MANAGEMENT.

TO ADDRESS ALL THESE CHALLENGES AND RESPOND EFFECTIVELY TO VOLATILITY AND UNCERTAINTY, THE DENR HAS EMBARKED ON A CONSULTATIVE PROCESS THAT LOOKS BEYOND STRATEGIC ENGAGEMENT IN ORDER TO ACHIEVE SHARED SOCIO-ECOLOGICAL VALUES AND IMPACTS JOINTLY.

MR. SY AND MS. CUSTODIO JOINED US ON OUR FIRST MAJOR ACTIVITY – A MULTISTAKEHOLDER CONFERENCE LAST OCTOBER THAT WAS SPECIFICALLY DESIGNED FOR US TO SIMPLY LISTEN, PROCESS, CALIBRATE, AND REDIRECT OUR WAY AHEAD AS A DEPARTMENT. WE WILL STRIVE TO KEEP THIS PROCESS OPEN AND DYNAMIC IN ORDER TO ANTICIPATE AND PREPARE FOR FUTURE DISRUPTIONS.

WHAT IS CERTAIN, HOWEVER, IS THAT LESSONS LEARNED FROM THE LOSS OF THOUSANDS OF LIVES AND LIVELIHOODS AND THE IRREVERSIBLE IMPACTS ON OUR ECOSYSTEMS SHOULD NOW BE MADE PART OF OUR SURVIVAL DNA.

OUR PRESIDENT HAS SAID, “THE PRESERVATION OF THE ENVIRONMENT IS THE PRESERVATION OF LIFE.” THIS STATEMENT PRECISELY UNDERSCORES THE VALUE OF OUR ECOSYSTEMS AS OUR NATURAL LIFE SUPPORT AND HOW INTEGRATED RISK GOVERNANCE NEEDS TO BE, NOT JUST A WHOLE OF GOVERNMENT ENDEAVOR, BUT A WHOLE OF SOCIETY ONE. FURTHER, IT ALSO SETS THE TONE FOR THE DENR’S MISSION MOVING FORWARD.

WHILE THE DERN MAY HAVE A SEEMINGLY CONTRADICTORY ROLE AS A PARTNER AND A REGULATOR, THIS DICHOTOMY IS MORE APPARENT THAN REAL. THE CRITICAL ISSUE IN LIGHT OF THE PRESENT AND FUTURE IMPACTS CLIMATE CHANGE IS HOW THIS RELATIONSHIP CAN BE DISTILLED TO ACHIEVE A CLIMATE AND DISASTER RESILIENT SOCIETY.

THE MITIGATION HIERARCHY’S PRINCIPLES OF AVOID, REDUCE, RESTORE, AND REGENERATE SHOULD BE PART OF THE CORPORATE DNA.THE FRAMEWORK IS QUITE BASIC AS IT STARTS WITH AVOIDANCE OF ALL POSSIBLE ENVIRONMENTAL IMPACTS. IF THIS CANNOT BE DONE, THEN THE NEXT OPTION WOULD BE TO MINIMIZE THESE TO A NEGLIGIBLE LEVEL. THE THIRD OPTION IS TO REHABILITATE ALL DISTURBED AREAS AND FINALLY, WHEN THIS FALLS SHORT, WE COMPENSATE BY PROVIDING FOR AND INVESTING IN OFFSETS AND ENHANCEMENTS OF SURROUNDING HIGH VALUE ECOSYSTEMS. THERE ARE SUCCESSFUL GLOBAL EXAMPLES OF THIS APPROACH ALREADY AND WE LOOK FORWARD TO STRATEGICALLY CO-CREATING SOLUTIONS WITHIN THIS FRAMEWORK WITH THE PRIVATE SECTOR.

THE PARTNERSHIP WE MARK TODAY HIGHLIGHTS THE NEW STEWARDSHIP ROLES WE MUST ASSUME TO ENSURE INCLUSIVE AND CLIMATE AND DISASTER RESILIENT DEVELOPMENT.

I BELIEVE IT IS HIGH TIME FOR THE PRIVATE SECTOR TO COME TOGETHER AS AN ALLIANCE TO ENSURE THAT THE ECOLOGICAL AND ECONOMIC GAINS AS INDIVIDUAL COMPANIES AND ORGANIZATIONS ARE LEVERAGED AND MAGNIFIED FOR THE GOOD OF OUR PEOPLE, OUR COUNTRY, AND OUR PLANET.

TODAY, I WISH TO CONGRATULATE YOU AND ASK FOR YOUR CONTINUED SUPPORT AS WE WORK TOGETHER TO ACHIEVE OUR GOALS. WE WISH TO COMMEND EVERYONE HERE TODAY FOR THE TRANSFORMATIONAL STEPS YOU HAVE ALREADY TAKEN IN THIS DIRECTION.

TO QUOTE AN ARTICLE FROM FORBES:
“THE MESSAGE FROM COP27 IN EGYPT IS LOUD AND CLEAR. TO CHANGE COURSE, AVOID A CLIMATE DISASTER, AND ENSURE A JUST TRANSITION, GOVERNMENTS, FINANCIAL INSTITUTIONS, AND BUSINESSES MUST INCREASE COLLABORATION AT ALL LEVELS.”
(SOURCE: COP27 MESSAGE: AVOID CLIMATE DISASTER WITH PRIVATE SECTOR COLLABORATION, 15 NOVEMBER 2022. WWW.FORBES.COM)

LET US CONTINUE TO THINK, INVEST, AND ACT IN ORDER TO KEEP 1.5 ALIVE AND MAKE SURE THAT NO COMMUNITY AND ECOSYSTEM IS LEFT BEHIND.

ON A PERSONAL NOTE, I WISH TO THANK THE SM GROUP, LED BY MR. HANS SY, MS. GRACE MAGNO, AND MS. LIZA SILERIO, AS WELL AS WWF-PHILIPPINES’ MS. TRIN CUSTODIO AND ATTY. GIA IBAY AND THE WWF BOARD, FOR THEIR FRIENDSHIP AND SUPPORT – AS WELL AS THEIR UNWAVERING COMMITMENT TO THE DEVELOPMENT OF OUR COUNTRY AND THE PROTECTION OF OUR ENVIRONMENT.

THANK YOU VERY MUCH AND GOOD MORNING.